The fund has consistently outperformed its benchmark CRISIL Hybrid 35+65 —Aggressive Index and also its peers — funds ranked under the aggressive hybrid category in March 2019 according to CRISIL Mutual Fund Ranking — across all the trailing periods under analysis.
An investment of Rs 10,000 in the fund on July 29, 2015, (inception date of the fund) would have grown to Rs 14,978 (11.15 CAGR) on May 24, 2019.
A similar investment in the category and the benchmark would have grown to Rs 13,561 (8.30 per cent CAGR) and Rs 14,379 (9.97 per cent CAGR), respectively.
A systematic investment plan (SIP) is a disciplined mode of regular investments offered by MFs to investors. An investment of Rs 10,000 a month in the fund in the past three years through an SIP, totalling Rs 3,60,000, would have grown to Rs 4,24,000 by May 24, 2019, at 11.13 per cent annualised returns.
In comparison, the same investment in the benchmark would have yielded Rs 4,17,000 at 10.03 per cent.
The fund’s equity allocation averaged 73.43 per cent during the past three years. Fixed income securities and cash equivalents had average allocations of 20.47 per cent and 6.09 per cent, respectively, during this period. The equity exposure mostly comprised large-cap stocks, with average allocation of 64.41 per cent.
HDFC Bank, Reliance Industries, ICICI Bank, Hindustan Petroleum, and Maruti Suzuki were the biggest contributors to the fund’s performance in the past three years and were consistently held during this period.
The fund’s debt portfolio was largely allocated to sovereign (averaging 10.01 per cent of the portfolio) and highest rated securities (AAA/A1+rated; 9.56 per cent).